MITANI SANGYO CO.,LTD. Q4 FY2026 earnings call

Overall Financial Performance and Dividend Updates

• The company achieved 6 consecutive years of revenue growth and 3 consecutive years of profit growth, with all core profit metrics and total revenue hitting all-time records in the 2026 March fiscal year. Revenue has grown more than 50 billion yen over the 9 years since the current CEO took office, with a 14 billion yen year-over-year increase in the most recent fiscal year.
• The company twice revised earnings and dividend guidance upward during the period, setting a full-year dividend of 13 yen per share, the highest level in 25 years (last reached in 2001). For the 2027 March fiscal year, the company maintains the 13 yen per year dividend in line with its continuous and stable dividend policy.

New Technology and Business Developments

• The company filed a provisional patent application in the U.S. for a new technology to reduce generative AI hallucinations (called

For the 2026 March fiscal year, all 6 of Mitani Sangyo's business segments achieved year-over-year sales growth, and 5 segments (all except Housing Equipment Related Business) achieved year-over-year operating profit growth. Detailed reported results for two highlighted segments: 1. Information Systems Related Business: Revenue grew year-over-year, driven primarily by NEXTGIGA School project orders (26 of 34 municipalities in Ishikawa and Toyama prefectures awarded contracts to Mitani Sangyo), plus associated education DX projects and core system renewal projects. Both revenue and operating profit hit all-time records even excluding NEXTGIGA School contributions, marking the second consecutive year of record revenue. 2. Chemicals Related Business: Revenue grew year-over-year to an all-time high for the second consecutive year, driven by higher customer operating rates, successful new client acquisition, higher selling prices, strong sales of both in-house and third-party API drugs, increased demand for functional material contract manufacturing, higher processing volumes in valuable metal recovery, and new shipments in northern Vietnam plus favorable foreign exchange translation impacts. Operating profit more than doubled year-over-year, supported by higher factory utilization for API production. Full aggregated results for all segments contributed to a group-wide 117.531 billion yen in total consolidated sales, 3.379 billion yen in operating profit, 4.519 billion yen in ordinary profit, and 3.627 billion yen in net profit attributable to parent company shareholders.

AI Reliability Governance Base

The system adds an external control layer to generative AI that checks information source, recency, consistency and safety, and avoids low-confidence responses or escalates to human review instead of generating plausible but incorrect answers. The company will partner with existing generative AI providers to commercialize this technology.

• The company has expanded into in-house technology development beyond its traditional trading company roots, with multiple proprietary technologies across business lines:
  • Non-dispersive blast processing for harmful paint removal from gas holders/tanks, with registered patents
  • Proprietary technology to extract umami flavor extract from enoki mushrooms, addressing supply shortages and price increases for traditional fish-based dashi
  • Chalaza, a middleware service that connects separate cloud/SaaS systems to eliminate duplicate employee data entry across business tools, with a strong pipeline of promising commercial negotiations
  • Tesera branded modular furniture with a patented high-strength tensioned frame design that supports heavy weight despite a slim profile
  • Plasma-treated carbon fiber sheets for infrastructure reinforcement, developed to address the upcoming wave of 50-year-old bridge renewals in Japan
  • Carbon fiber recycling technology that removes resin from end-of-life carbon fiber composites for reuse, addressing environmental risks of discarded carbon fiber; group company Mirai Kasei's two employees won the Ministry of Education, Culture, Sports, Science and Technology's Award for Ingenuity for improving this recycling process, which has become more economically viable amid recent raw material price increases.

Historical Strategic Context

• The company transitioned from a coal trading business to chemicals after World War II when coal sales were restricted, and chemicals now account for ~40% of group revenue. Management notes the company has a long history of adapting to external market changes and is confident it can navigate current challenges from Middle East geopolitical tensions.

• No question and answer section is included in the provided transcript.